Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2026

The following tables present, for each reportable segment, revenues, the measure of segment profit or loss, and significant segment expenses that are regularly reviewed by the CODM. Segment results are prepared on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated amounts below:


	For the Quarter Ended June 30, 2026
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Net Interest Income:
Interest income	$	206,910	$	14,715	$	221,625
Interest expense	140,205		10,911		151,116
Net interest income	66,705		3,804		70,509

Increase in provision for credit losses	7,192		—		7,192

Other income (losses):
Net unrealized gains (losses) on derivatives	15,398		—		15,398
Realized gains (losses) on derivatives	9,527		—		9,527
Periodic interest on derivatives, net	2,061		—		2,061
Net gains (losses) on derivatives	26,986		—		26,986
Investment management and advisory fees	6,540		—		6,540
Interest income from investment in MSR financing receivables, net	838		—		838
Net unrealized gains (losses) on financial instruments at fair value	(43,386)		—		(43,386)
Net realized gains (losses) on sales of investments	(9,623)		—		(9,623)
Gains (losses) on extinguishment of debt	(2,748)		—		(2,748)
Other investment gains (losses)	1,229		—		1,229
Gain on origination and sale of loans, net	(68)		22,278		22,210
Total other income (losses)	(20,232)		22,278		2,046

Other expenses:
Compensation and benefits	13,223		11,879		25,102
General and administrative expenses	9,027		2,452		11,479
Servicing and asset manager fees	4,431		—		4,431
Depreciation, amortization, and impairment of intangible assets	644		3,432		4,076
Transaction expenses	3,207		—		3,207
Total other expenses	30,532		17,763		48,295

Income (loss) before income taxes	8,749		8,319		17,068
Income tax (benefit) expense	47		(348)		(301)
Net income (loss)	8,702		8,667		17,369

Dividends on preferred stock	21,381		—		21,381

Net income (loss) available to common shareholders	$	(12,679)	$	8,667	$	(4,012)


	For the Quarter Ended June 30, 2025
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Net Interest Income:
Interest income	$	201,297	$	—	$	201,297
Interest expense	135,287		—		135,287
Net interest income	66,010		—		66,010

Increase in provision for credit losses	4,409		—		4,409

Other income (losses):
Net unrealized gains (losses) on derivatives	(2,554)		—		(2,554)
Realized gains (losses) on derivatives	(17,954)		—		(17,954)
Periodic interest on derivatives, net	5,067		—		5,067
Net gains (losses) on derivatives	(15,441)		—		(15,441)
Investment management and advisory fees	8,810		—		8,810
Interest income from investment in MSR financing receivables, net	—		—		—
Net unrealized gains (losses) on financial instruments at fair value	6,971		—		6,971
Net realized gains (losses) on sales of investments	(1,915)		—		(1,915)
Gains (losses) on extinguishment of debt	—		—		—
Other investment gains (losses)	2,953		—		2,953
Gain on origination and sale of loans, net	—		—		—
Total other income (losses)	1,378		—		1,378

Other expenses:
Compensation and benefits	11,660		—		11,660
General and administrative expenses	6,815		—		6,815
Servicing and asset manager fees	7,306		—		7,306
Depreciation, amortization, and impairment of intangible assets	949		—		949
Transaction expenses	390		—		390
Total other expenses	27,120		—		27,120

Income (loss) before income taxes	35,859		—		35,859
Income tax (benefit) expense	409		—		409
Net income (loss)	35,450		—		35,450

Dividends on preferred stock	21,426		—		21,426

Net income (loss) available to common shareholders	$	14,024	$	—	$	14,024


	For the Six Months Ended
	June 30, 2026
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Net Interest Income:
Interest income	$	412,255	$	28,665	$	440,920
Interest expense	274,372		21,036		295,408
Net interest income	137,883		7,629		145,512

Increase in provision for credit losses	10,016		—		10,016

Other income (losses):
Net unrealized gains (losses) on derivatives	33,548		—		33,548
Realized gains (losses) on derivatives	12,397		—		12,397
Periodic interest on derivatives, net	3,895		—		3,895
Net gains (losses) on derivatives	49,840		—		49,840
Investment management and advisory fees	13,704		—		13,704
Interest income from investment in MSR financing receivables, net	3,149		—		3,149
Net unrealized gains (losses) on financial instruments at fair value	(80,923)		—		(80,923)
Net realized gains (losses) on sales of investments	(50,051)		—		(50,051)
Gains (losses) on extinguishment of debt	(41,605)		—		(41,605)
Other investment gains (losses)	320		—		320
Gain on origination and sale of loans, net	(68)		43,663		43,595
Total other income (losses)	(105,634)		43,663		(61,971)

Other expenses:
Compensation and benefits	28,289		23,519		51,808
General and administrative expenses	19,062		4,578		23,640
Servicing and asset manager fees	9,953		—		9,953
Depreciation, amortization, and impairment of intangible assets	6,866		6,859		13,725
Transaction expenses	3,305		—		3,305
Total other expenses	67,475		34,956		102,431

Income (loss) before income taxes	(45,242)		16,336		(28,906)
Income tax (benefit) expense	(2,059)		(306)		(2,365)
Net income (loss)	(43,183)		16,642		(26,541)

Dividends on preferred stock	42,478		—		42,478

Net income (loss) available to common shareholders	$	(85,661)	$	16,642	$	(69,019)


	For the Six Months Ended
	June 30, 2025
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Net Interest Income:
Interest income	$	391,914	$	—	$	391,914
Interest expense	256,684		—		256,684
Net interest income	135,230		—		135,230

Increase in provision for credit losses	7,796		—		7,796

Other income (losses):
Net unrealized gains (losses) on derivatives	(9,024)		—		(9,024)
Realized gains (losses) on derivatives	(17,872)		—		(17,872)
Periodic interest on derivatives, net	9,202		—		9,202
Net gains (losses) on derivatives	(17,694)		—		(17,694)
Investment management and advisory fees	17,745		—		17,745
Interest income from investment in MSR financing receivables, net	—		—		—
Net unrealized gains (losses) on financial instruments at fair value	135,866		—		135,866
Net realized gains (losses) on sales of investments	(1,915)		—		(1,915)
Gains (losses) on extinguishment of debt	2,122		—		2,122
Other investment gains (losses)	2,536		—		2,536
Gain on origination and sale of loans, net	—		—		—
Total other income (losses)	138,660		—		138,660

Other expenses:
Compensation and benefits	24,745		—		24,745
General and administrative expenses	13,721		—		13,721
Servicing and asset manager fees	14,737		—		14,737
Depreciation, amortization, and impairment of intangible assets	1,902		—		1,902
Transaction expenses	6,077		—		6,077
Total other expenses	61,182		—		61,182

Income (loss) before income taxes	204,912		—		204,912
Income tax (benefit) expense	2,165		—		2,165
Net income (loss)	202,747		—		202,747

Dividends on preferred stock	42,783		—		42,783

Net income (loss) available to common shareholders	$	159,964	$	—	$	159,964

Gain on origination and sale of loans, net

The following table presents the components of gain on origination and sale of loans, net by reportable segment, including the elimination of intersegment activity related to transfers of loans held for sale between the Company's Residential Origination and Investment Portfolio segments.


	For the Quarter Ended
	June 30, 2026
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Elimination		Total
Premium from loan sales	$	—	$	30,978	$	(10,069)	$	20,909
Mark to market changes on LHFS	6,050		937		—		6,987
Unrealized gains from hedging derivative instruments	4,144		(1,028)		—		3,116
Unrealized gains from IRLC	—		(103)		—		(103)
Periodic interest on derivatives, net	97		—		—		97
Realized gains from hedging instruments, net	—		2,364		—		2,364
Provision for loan repurchase reserves	—		(683)		—		(683)
Loan origination income, net	(10,069)		(2,918)		10,069		(2,918)
Direct loan origination costs, net	(290)		(7,269)		—		(7,559)
Gain on origination and sale of loans, net	$	(68)	$	22,278	$	—	$	22,210


	For the Six Months Ended
	June 30, 2026
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Elimination		Total
Premium from loan sales	$	—	$	66,225	$	(10,069)	$	56,156
Mark to market changes on LHFS	6,050		(7,348)		—		(1,298)
Unrealized gains from hedging derivative instruments	4,144		125		—		4,269
Unrealized gains from IRLC	—		200		—		200
Periodic interest on derivatives, net	97		—		—		97
Realized gains from hedging instruments, net	—		2,476		—		2,476
Benefit (provision) for loan repurchase reserves	—		(756)		—		(756)
Loan origination income, net	(10,069)		(4,125)		10,069		(4,125)
Direct loan origination costs, net	(290)		(13,135)		—		(13,424)
Gain on origination and sale of loans, net	$	(68)	$	43,662	$	—	$	43,595

Segment Assets

The CODM reviews total assets by segment in evaluating performance and allocating resources. Segment assets are presented on the same basis as the Company’s consolidated financial statements and are reconciled to consolidated total assets below.


	As of
	June 30, 2026
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Total assets	$	14,971,433	$	1,073,614	$	16,045,048
Total stockholders’ equity	$	2,118,667	$	296,959	$	2,415,626


	As of
	December 31, 2025
	(dollars in thousands)
	Investment Portfolio		Residential Origination		Total
Total assets	$	14,676,908	$	1,131,634	$	15,808,542
Total stockholders’ equity	$	2,292,377	$	280,317	$	2,572,694

- Definition

Tabular disclosure of segment reporting. Includes, but is not limited to, reconciliation of reportable segment amount to corresponding consolidated total.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26A

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-25

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

+ Details